> Warren Buffett Blog: Warren Buffett has lot of cash to buy more stocks

Wednesday, September 2, 2015

Warren Buffett has lot of cash to buy more stocks

When the stock market declines, Warren Buffett and Berkshire Hathaway usually get ready to make a ton of money. In 2008, at the nadir of the financial crisis, Buffett invested $5 billion in Goldman Sachs. Three billion dollars went to General Electric a month later.

In August of 2011, Buffett invested in Bank of America. The markets were in a full-on panic over Bank of America's mortgage loan problems. Meanwhile, Buffett calmly stroked a check for $5 billion. In all, Berkshire invested more than $25 billion in deals during the crisis.

By 2013, those investments had already returned $10 billion to Berkshire.The returns are stunning, but they're only possible because Berkshire had the ability to write $25 billion of checks to actually make the investments.

This time around, the company has even more cash at the ready. As of June 30,Berkshire reported cash and equivalents of $66 billion, with free cash flow of $4.6 billion for the quarter.That is just an absurd amount of money, and it sits at the willing and capable hands of perhaps the greatest opportunist of all time, Warren Buffett.